What is the superannuation guarantee amnesty?
On 6 March 2020 the government introduced a super guarantee amnesty. The amnesty is a one-off opportunity to correct any unpaid or underpaid Super Guarantee amounts.
What does the super amnesty cover?
The amnesty allows employers to disclose and pay previously unpaid super, including nominal interest that they owe their employees. It covers quarter(s) between 1 July 1992 and 31 March 2018.
Employers will still be required to pay all employee entitlements, including:
- The unpaid Super Guarantee amounts;
- The nominal interest; and
- Any associated general interest charge.
Benefits of the amnesty
If an employer qualifies for the amnesty they:
- Will be able to claim a tax deduction for catch-up payments made in the amnesty period.
- Won’t be required to pay the administration component ($20 per employee per quarter).
- Won’t be charged a Part 7 Penalty.
How long does the super amnesty last for?
The government’s super amnesty closes on until 7 September 2020 at 11.59pm. Employers affected by the coronavirus and who are unable to pay can work with the ATO to establish a flexible payment plan. Payment plans may be extended beyond 7 September 2020, however only payments made by 7 September 2020 will be tax-deductible.
How do I apply for the super amnesty?
To apply for the amnesty you are required to lodge one approved SG Amnesty form for each quarter. This form can be found on the ATO Website.
The information provided above is an overview only. Please refer to the ATO website for full information and speak to your accountant/bookkeeper.
What are my Super Guarantee obligations?
As an employer you may be obliged to make Super Guarantee payments on behalf of your employees. The rate is currently 9.5% of an employee’s ordinary time earnings.
To find out if you are meeting your business super obligations and doing the right thing for your employees, check your Business Super Profile today.
For more information about who you have to pay super to, refer to the ATO website or speak to your accountant.